Consumer confidence improves but economic concerns have ‘not disappeared’

The overall index score increased three points to -20 month on month in May. All measures were up in comparison to April.

Confidence in personal finances over the last year was also up three points to -7, also marking a three point improvement in comparison to May 2024.

The outlook for personal finances over the coming year has also improved by five points to +2.

The general economic situation for the past 12 months also improved by one point to -46, with this measure anticipated to increase four points to -33 over the next year.

The major purchase index was also up three points to -16 in May.

GfK consumer insights director Neil Bellamy said: “There’s an improvement across all five key indicators in May, led by two forward-looking findings. The measure for personal finances looking ahead for the next 12 months has moved out of negative territory, increasing by five points to +2. There’s a similar improvement in how consumers see the coming year’s general economy, with a four-point boost to -33.

“It’s also worth noting the three-point rise in the measure on major purchases for big ticket items, such as furniture or electrical goods, with May’s score of -16 marking the highest level seen since the end of 2024. Have consumers taken comfort from the Bank of England’s May 8th quarter-point base-rate cut? And have they breathed a tiny sigh of relief since April when the sudden turbulence of the Trump Tariffs was prompting dire warnings of economic damage and a return to inflation? Those dangers – especially the issue of inflation – have not disappeared but the consumer mood in the UK does appear to have improved a little.”